Federated Hermes (FHI) Q3 FY2023 earnings: revenue $403 million, up 5.6% on the year

Federated Hermes, Inc. (FHI) reported revenue of $403 million for Q3 FY2023, the quarter ended 30 September 2023, up 5.6% on the same quarter a year earlier. Net income was $75 million, up 8.0% on the year, and diluted earnings per share $0.86. The figures are the company's own, from the 10-Q it filed with the SEC on 27 October 2023.

Revenue$403 millionup 5.6%

Net income$75 millionup 8.0%

Diluted EPS$0.86

QuarterQ3 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Revenue	403	n/a	n/a	n/a
Operating income	101	n/a	n/a	n/a
Operating margin	25.2%	n/a	n/a
Pre-tax income	101	n/a	n/a	n/a
Income tax	26.7	n/a	n/a	n/a
Effective tax rate	26.5%	n/a	n/a
Net income	75.0	n/a	n/a	n/a
Net margin	18.6%	n/a	n/a
Diluted EPS	$0.86	n/a	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	106	n/a	n/a	n/a
Capital expenditure	2.1	n/a	n/a	n/a
Free cash flow	104	n/a	n/a	n/a
Free cash flow margin	25.7%	n/a	n/a
Cash from investing	1.3	n/a	n/a	n/a
Cash from financing	-68.4	n/a	n/a	n/a
Share-based compensation	7.5	n/a	n/a	n/a
Buybacks	64.1	n/a	n/a	n/a
Dividends paid	24.7	n/a	n/a	n/a
Dividend per share	$0.28	n/a	n/a	n/a
Diluted shares, weighted	84m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Shareholders' equity	1,100	n/a	n/a	n/a
Redeemable equity	70.6	n/a	n/a	n/a
Debt	348	n/a	n/a	n/a
Operating lease liabilities	96.0	n/a	n/a	n/a
Other liabilities	466	n/a	n/a	n/a
Total liabilities and equity	2,080	n/a	n/a	n/a
Fixed assets	31.4	n/a	n/a	n/a
Goodwill	802	n/a	n/a	n/a
Intangible assets	402	n/a	n/a	n/a
Cash and equivalents	377	n/a	n/a	n/a
Other assets	468	n/a	n/a	n/a
Total assets	2,080	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	403	391	396	403	408	425	424	425	469	483	479	503
Operating income	101	103	98.6	40.7	112	110	132	117	129	136	126	133
Operating margin	25%	26%	25%	10%	27%	26%	31%	28%	28%	28%	26%	26%
Pre-tax income	101	117	104	42.7	123	112	136	131	140	140	130	144
Tax rate	26%	27%	28%	55%	26%	25%	24%	26%	24%	23%	26%	26%
Net income	75.0	82.2	75.0	21.0	87.5	84.7	101	91.0	104	107	96.4	104
Net margin	19%	21%	19%	5%	21%	20%	24%	21%	22%	22%	20%	21%
Diluted EPS	$0.86	$0.95	$0.89	$0.20	$1.06	$1.04	$1.25	$1.16	$1.34	$1.38	$1.27	$1.38
Operating cash flow	106	130	14.0	88.7	117	127	14.3	18.8	103	161	28.8	80.9
Capital expenditure	2.1	2.1	0.6	6.0	n/a	0.5	1.0	0.8	1.4	n/a	4.8	1.2
Free cash flow	104	128	13.5	82.7	n/a	126	13.3	18.0	102	n/a	24.0	79.7
Buybacks	64.1	65.1	39.0	46.2	28.9	23.4	120	65.5	0.0	77.1	64.7	64.0
Dividends paid	24.7	24.1	23.7	110	25.6	25.2	25.3	26.8	26.4	26.4	25.9	28.8
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 September 2023, filed 27 October 2023, accession 0001056288-23-000029: the filing on EDGAR. All of Federated Hermes, Inc.'s filings: EDGAR company page.

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